Gold traded near its record high, on course for a monthly gain, ahead of US inflation data this week that may help to clarify the pace at which the Federal Reserve will ease policy.
Bullion edged higher, hovering around $2,520 an ounce after declining on Wednesday. Figures due Friday are expected to show the three-month annualized rate of core inflation down to 2.1%, just above the central bank’s 2% target, which would support the case for rate cuts.
Gold has rallied this year, with recent gains supported by expectations that the US central bank is poised to lower borrowing costs. Fed Chair Jerome Powell said last week that the “time has come” to ease, although other officials including Fed Bank of Atlanta President Raphael Bostic have struck a slightly more cautious tone. Rate cuts typically aid bullion as it doesn’t pay interest.
Spot gold rose 0.5% to $2,516.62 by 9:13 a.m. in London after peaking at $2,531.75 last week. The Bloomberg Dollar Spot Index was little changed, though on course for its third monthly loss in four. Silver advanced above $29 an ounce, while platinum and palladium also climbed.
Source : Bloomberg
